Indian Mobile Advertisers Await the Arrival of 3G Services

I have always stated that India is one place where mobile advertising could grow really, really big. A recent report from FICCI-KPMG supports by claim again. It says that nearly 80% of mobile users in India do not mind getting ads on their mobile phones if they get something in return – free music downloads, video games, and stuff like that. More importantly, nearly 50% of mobile users say that they would view the ads they get on their phones.

This news could not have come at a better time for mobile advertisers. 3G services are going to be launched in India by the end of 2010, after which mobile users will be able to access mobile websites and WAP sites at lightning fast speeds. Though India entered the 3G domain in 2008, only the government owned operator, BSNL, was allowed to provide 3G services to customers. So, a huge section of mobile users, who use the services of private players, had to wait for a long time. Later this year, private players will be allowed to provide 3G service, after which there could be a huge increase in the number of 3G users in India.

What makes this report even more special is that Indian mobile market is growing at an astonishing pace. In 2001, there were only about 5 million mobile users in India. Within a decade, the number has increased to a mind-boggling 635 million, which means the market has grown at a jaw-dropping pace. So, India is potentially the biggest market for mobile advertisers all over the world.

Indian mobile advertisers feel that the introduction of 3G services will allow them to reach out to their target customer base more efficiently. So far, SMS advertising has remained the popular choice of advertisers all over the country as a large number of mobile users do not have high-end phones or high speed data connections. The situation, however, is changing rapidly. The increasing number of high-end phone users and the introduction of affordable 3G services mean that advertisers will now be able to reach out to their customers through video based and MMS based ads. So, Indian mobile advertising industry is awaiting the arrival of private players in the 3G domain eagerly.

Categories: Cell Phone Advertising.

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US Mobile Display Ad Spending Likely to Exceed $1 Billion in 2015

ABI Research’s recent report says that mobile advertising spending on display ads in the United States is likely to quadruple in the next few years. The amount spent on mobile display ads, which stands at just over $300 million now, is expected to exceed $1.2 billion in 2015.

Neil Strother of ABI Research says that a survey conducted by the firm in February revealed that 28% of mobile users use the mobile internet facility regularly. He says that the percentage of mobile internet users has increased phenomenally in the last 14 months, which is a great sign for the mobile advertising market.

The report, based on the inputs from a number of mobile marketers, technology vendors, mobile network operators, and advertising agency executives, says that there has been a steady increase in the amount allocated for mobile ad campaigns by companies. Industry insiders say that they have been seeing year-over-year increases of 25%-30%, which is unprecedented when you consider the fact that the industry is still in its infant stage.

Marketers use different types of ads like mobile display ads, text message ads, in-app ads, search ads, and video ads to reach their target audience. They rely on simple text message ads to reach people with low end phones that lack advanced features like mobile TV, internet, audio, and video. On the other hand, they use a variety of rich, multimedia ads to reach people with smartphones that come loaded with advanced features. Statistics show that smartphone penetration in the US is just about 20% now. As this number increases, we can expect a huge surge in the number of mobile ads served across the country.

One of the important signs that indicate a bright future for the industry is the entry of big players like Apple and Google. So far, the industry has been dominated by independent ad networks like Millennial Media, Jumptap, and Greystripe. Google’s acquisition of AdMob and Apple’s acquisition of Quattro Wireless, however, has changed the scenario completely. It shows that the idea of using the mobile phone as an advertising medium is slowly getting mainstream acceptance, which is great news for anyone is related to the mobile advertising industry.

Categories: Cell Phone Advertising.

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How Big Will be the Impact of the iPad on Mobile Advertising?

So, the much awaited Apple iPad is here. Pundits have analyzed every single technical aspect of the gadget and have given their verdict, which is unanimously positive. As expected, the hype that preceded the launch was incredibly huge. I cannot recall any incident in the recent past that generated so much buzz in the market. Experts say that the iPad could transform everything – from print medium to computing. The real question, and the most pertinent question, is this – how big of an impact will it have on the world of mobile advertising?

Experts say that the impact will be huge. There is an important reason why they say so.

Creating ads for mobile phones with small screens is not exactly a great experience for advertisers as it does not give them a lot of options to explore their creativity. They are basically forced to create simple ads meant for low end phones. This is one of the reasons why a lot of advertisers still rely on text message marketing to reach their target customer base. The iPad, with its large touch screen and tons of highly advanced features, offers a great solution to this problem. Now, advertisers will be able to create compelling multimedia ads that will appeal to mobile users.

The only problem with the iPad, as far as I know, is the controlling and domineering nature of Apple. The company, as most of you are probably already aware of, insists on getting things done their way. So, advertisers might not be able to create ads whichever way they want and might be forced to follow the guidelines of the company. However, I do not think it will stop anyone from doing business with Apple, as mobile advertisers know that this is a great opportunity for them to build compelling mobile advertising campaigns to target consumers on the go.

Already, a number of mobile marketing companies have geared up to develop customized mobile video games, interactive publishing services, and applications for the iPad. So, soon we can expect them to come up with banner ads, video ads, audio ads, in-app ads, and other types of ads that are guaranteed to elicit response from the users.

From what I have seen and heard so far, I can safely assume that the iPad will have a huge impact on mobile advertising. It is, undoubtedly, great news for mobile advertisers, publishers, and app developers.

Categories: Cell Phone Advertising, All things mobile phones, Apple.

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Blyk Launches Operator Network in the Netherlands

Cell phone advertising firm Blyk recently launched an operator service in the Netherlands. It has announced that it has joined hands with Vodafone and will be operating on its network. If you remember, it signed a similar deal with Orange some time back. Experts think that this partnership signals the recovery of the mobile advertising market which was affected to some extent due to the recession.

Blyk sends targeted mobile ads to its subscribers in exchange for free call minutes and free text messages. It calls itself a ‘mobile network for young people’ and targets people aged 16-29. People who subscribe to the service will get targeted ads from various brands including Nike, McDonald’s, Electronic Arts, and more. They will, in exchange, get free talk time and SMS credit.

Blyk has also announced that it is interested in fast growing markets and its next launch, not surprisingly, will be in India. Entering India, a country with more than 300 million mobile users, can be a great opportunity for the company to grow. The company already has an office in Delhi. While it has not revealed any further details, it is said that the launch could happen pretty soon.

Blyk, as some of you might already be aware of, is known for its highly targeted mobile advertising campaigns. If the response rates of its campaigns in the past are anything to go by, it can be said that it will be just as big a success in the Netherlands as it is in the UK. Let’s wait and watch, shall we?

Categories: Cell Phone Advertising, Blyk.

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Steve Madden’s Plan to Enter the Mobile World

Optimistic predictions about mobile advertising are not new at all. You can find a whole bunch of experts claiming that the mobile phone will become the most sought-after advertising platform in the future. However, when something that validates these claims happens, it surely is exciting.

Steve Madden, a San Francisco based retail shoe brand, has been bitten by the mobile bug and is considering shifting its focus on mobile phone advertising. Jared Horowitz, who is in charge of the business development section of Steve Madden, has stated that it has become an integral part of their digital business.

As of now, only 0.5% of Steve Madden’s revenue is generated by mobile users. The company, however, is hopeful that the revenue will increase significantly in the coming years if they develop a mobile optimized site and drive traffic to it by running innovative mobile advertising campaigns. So, to prepare themselves for the mobile juggernaut, they have come up with a long list of plans. They include

• Developing a mobile optimized WAP site which is easy to navigate.

• Adding lots of interactive features to the site like click-to-call functionality (to help people get in touch with sales persons directly) and mobile social networking functionality (to help people share their favorite stuff with their friends via email, Twitter, or Facebook).

• Adding a Store Locator feature to help people find the nearest Steve Madden store.

• Developing an application for the iPhone and iPod Touch to make it easier for iPhone users to reach the site.

• Setting up multiple revenue streams with mobile web display ads, mobile search ads, and in-app display ads.

• Introducing SMS offers and mobile coupons to engage potential customers.

• Devising innovative mobile marketing strategies to target potential customers.

According to the numbers revealed by the company, the non-optimized site of Steve Madden got more than 55,000 visitors via mobile devices in the month of February. There were more than 300,000 page views and 450 purchases. If they go ahead with the plan and implement the ideas they have come up with, they will be able to get a lot more visitors in a short span of time. More traffic, needless to add, will result in more revenue, which is always good news for any company. It should be interesting to see where Steve Madden goes from here.

Categories: Cell Phone Advertising.

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